SBC Exports delivered a significant improvement in profitability and top-line growth for Q1FY27, while also identifying Dubai and the Middle East as major opportunities, with international business expected to be a primary growth and profit source for the full year. The company reported a standalone net profit after tax (PAT) of ₹9.42 crore for the quarter ended June 30, 2026, marking a 270.87% increase compared to ₹2.54 crore in the corresponding period of FY26. This surge was supported by robust revenue growth and operational efficiency across its garments export, IT support services, and travel verticals.

Standalone revenue from operations (excluding other income) rose 72.80% year-on-year to ₹106.03 crore, up from ₹61.36 crore in Q1FY26. The company's earnings before interest, depreciation, and taxes (EBITDA), excluding other income, jumped 221.44% to ₹16.49 crore, reflecting strong operating leverage.

Financial performance

The financial results highlight a sharp expansion in margins alongside volume growth. Key standalone metrics for the quarter are detailed below:

On a consolidated basis, revenue grew 67.11% to ₹121.08 crore, while consolidated PAT increased 269.23% to ₹9.60 crore. Consolidated EBITDA rose 192.21% to approximately ₹16.89 crore, with the margin improving from 8.02% to 13.64%.

What the numbers show

The disproportionate growth in profit relative to revenue indicates significant operating leverage. While standalone revenue grew 72.80%, EBITDA expanded 221.44%, resulting in an EBITDA margin expansion of over 650 basis points. This suggests that fixed costs were effectively spread over a larger revenue base or that input costs remained stable despite higher volumes. Additionally, the pre-tax profit (PBT) including other income matched the EBITDA figure at ₹16.50 crore, implying minimal interest and depreciation expenses relative to operating earnings.

Management outlook and Dubai opportunity

Govind Ji Gupta, Managing Director, attributed the performance to strengthening demand, an expanded customer base, and improved operational efficiency. He noted that evolving global trade conditions and diversification in global sourcing are creating new opportunities for the textile industry. The company sees big opportunities in Dubai and the Middle East, believing international business will be a major growth and profit source in FY27.

SBC Exports is targeting overall business growth of approximately 40%-50% for FY27, subject to market conditions. Gupta highlighted the restoration of shipping connectivity through the West Asia region, particularly the Dubai route, as a key growth catalyst. Previously restricted by geopolitical disruptions affecting the Strait of Hormuz, the reopening of this trade channel allows SBC Exports to recover deferred business and pursue new export orders in the Middle East.

Business verticals update

• International business: Exports of readymade garments remain the core revenue driver. The company expects the restored Dubai route to unlock pent-up demand and support higher volumes in coming quarters.
• Domestic growth: Through its flagship brand F-Route Clothing, the company is expanding its product portfolio with new cord sets and formal shirts for men, leveraging its e-commerce platform to enhance direct-to-consumer engagement.
• Travel segment: The wholly owned subsidiary, Mauji Trip Limited, continues to contribute to consolidated results through its tour and travel services, complementing the diversified portfolio.

SBC Exports has set a target of approximately 40%-50% overall business growth for FY26-27, signalling an ambitious expansion agenda for the company.

Growth target overview

The company has outlined its overall business growth objective at approximately 40%-50% for FY26-27. The target reflects the scale of expansion SBC Exports plans to pursue across its business operations during this period.